Gates Industrial Corporation plc (GTES)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,311,500 | 2,415,000 | 2,426,400 | 2,526,500 | 2,666,000 |
| Total stockholders’ equity | US$ in thousands | 3,023,600 | 3,220,200 | 3,110,000 | 3,099,700 | 2,805,700 |
| Debt-to-capital ratio | 0.43 | 0.43 | 0.44 | 0.45 | 0.49 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,311,500K ÷ ($2,311,500K + $3,023,600K)
= 0.43
The debt-to-capital ratio for Gates Industrial Corporation plc has been on a declining trend over the past five years. Starting at 0.49 as of December 31, 2020, the ratio has decreased to 0.45 in 2021, further dropping to 0.44 in 2022, and then reaching 0.43 for both 2023 and 2024. This indicates that the company has been effectively managing its debt levels in relation to its total capital structure over the years, potentially reducing financial risk and enhancing overall financial stability. A lower debt-to-capital ratio suggests that a smaller portion of the company's capital is financed by debt, which could be viewed positively by creditors and investors.
Peer comparison
Dec 31, 2024